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EXHIBIT 99.1
[ESPERION THERAPEUTICS LOGO]
FOR IMMEDIATE RELEASE
COMPANY Frank Thomas MEDIA Jim Wetmore
CONTACT: VP, Finance and Investor Relations CONTACT: Berry & Company Public Relations
Esperion Therapeutics, Inc. (212) 253-8881
(734) 222-1831 jwetmore@berrypr.com
fthomas@esperion.com
ESPERION REPORTS FINANCIAL RESULTS FOR
THE QUARTER AND SIX MONTHS ENDED JUNE 30, 2003
ANN ARBOR, MI (July 16, 2003) -- Esperion Therapeutics, Inc. (Nasdaq: ESPR), a
biopharmaceutical company dedicated to the discovery, development and
commercialization of therapies to improve the treatment of cardiovascular
disease, today reported financial results for the quarter and six months ended
June 30, 2003.
For the quarter ended June 30, 2003, Esperion reported a net loss of $8.4
million, or $0.29 per share, compared to a net loss of $7.8 million, or $0.27
per share, for the second quarter of 2002. Total operating expenses for the
second quarter of 2003 were $7.8 million, compared to $7.3 million for the
second quarter of 2002, representing a 7.2% increase.
Research and development expenses totaled $6.3 million for the second quarter of
2003, or 80.1% of total operating expenses. This amount includes the accrual of
a $1.0 million milestone payment under an agreement relating to one of our
product candidates. The magnitude of the Company's operating expenses each
quarter is largely dependent upon the progress, timing, number, nature and size
of the Company's clinical trials and related manufacturing activities.
The development status of each of the Company's current product candidates is as
follows:
o ETC-588, or LUV (Phase II) -- Currently enrolling patients in a multiple-dose
Phase II clinical trial in patients with carotid atherosclerosis. Completed
enrollment in July 2003 for a multiple-dose Phase II clinical trial in
patients with acute coronary syndromes.
o ETC-216, or AIM (Phase II) -- Completed a multiple-dose Phase II clinical
trial in patients with acute coronary syndromes. Announced initial results in
June 2003.
o ETC-642, or RLT Peptide (Phase I) -- Currently enrolling patients with stable
cardiovascular disease in a second Phase I single-dose clinical trial and a
Phase I multiple-dose trial.
o ETC-1001 (Phase I) -- Currently enrolling healthy volunteers in a Phase I
single escalating dose trial.
The net loss for the six months ended June 30, 2003 was $15.8 million, or $0.54
per share compared to a net loss of $15.1 million, or $0.52 per share, in the
first six months of 2002. Results for the six
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ESPERION REPORTS FINANCIAL RESULTS FOR THE QUARTER AND
SIX MONTHS ENDED JUNE 30, 2003 PAGE 2
months ended June 30, 2003 include operating expenses of $14.9 million compared
to $14.7 million for the corresponding period in 2002, an increase of 1.8%.
As of June 30, 2003, Esperion had $32.2 million in cash and short-term
investments, compared with $44.9 million at December 31, 2002, representing a
decrease in net cash of $12.7 million. Long-term debt, including the current
portion, was $9.1 million at June 30, 2003 compared with $8.8 million at
December 31, 2002. As a development stage company, Esperion has not reported any
revenue since its inception.
ESPERION THERAPEUTICS
Esperion Therapeutics, Inc. discovers and develops pharmaceutical products for
the treatment of cardiovascular disease. Esperion intends to commercialize a
novel class of drugs that focuses on a new treatment approach called "HDL
Therapy," which is based on the Company's understanding of high-density
lipoprotein, or HDL, function. HDL is the primary facilitator of the reverse
lipid transport, or RLT, pathway by which excess cholesterol and other lipids
are removed from artery walls and other tissues and are transported to the liver
for elimination from the body. Esperion's goal is to develop drugs that exploit
the beneficial functions of HDL within the RLT pathway. Esperion currently has
product candidates under development for the treatment of cardiovascular
disease. Esperion is listed on the Nasdaq National Market under the symbol
"ESPR."
SAFE HARBOR STATEMENT
The information contained in this press release includes "forward-looking
statements" within the meaning of the Private Securities Litigation Reform Act
of 1995. These forward-looking statements are often identified by words such as
"hope," "may," "believe," "anticipate," "plan," "expect," "require," "intend,"
"assume" and similar expressions. Forward-looking statements speak only as of
the date of this press release, reflect management's current expectations,
estimations and projections and involve certain factors, such as risks and
uncertainties, that may cause actual results, performance or achievements to be
far different from those suggested by the Company's forward-looking statements.
These factors include, but are not limited to, risks associated with: the
Company's ability to successfully execute its business strategies, including
entering into any strategic partnerships or other transactions; the progress and
cost of development of the Company's product candidates; the extent and timing
of market acceptance of new products developed by the Company or its
competitors; dependence on third parties to conduct clinical trials for the
Company's product candidates; the extent and timing of regulatory approval, as
desired or required, for the Company's product candidates; the Company's
dependence on licensing arrangements and strategic relationships with third
parties; clinical trials; manufacturing; the Company's dependence on patents and
proprietary rights; the procurement, maintenance, enforcement and defense of the
Company's patents and proprietary rights; competitive conditions in the
industry; business cycles affecting the markets in which any of the Company's
products may be sold; extraordinary events and transactions; the timing and
extent of the Company's financing needs and the Company's access to funding,
including through the equity market; fluctuations in foreign exchange rates; and
economic conditions generally or in various geographic areas. These factors are
discussed in more detail in the Company's filings with the Securities and
Exchange Commission. The Company does not intend to update any of these factors
or to publicly announce the results of any revisions to any of these
forward-looking statements other than as required under the federal securities
laws.
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ESPERION REPORTS FINANCIAL RESULTS FOR THE QUARTER AND
SIX MONTHS ENDED JUNE 30, 2003 PAGE 3
ESPERION THERAPEUTICS, INC. AND SUBSIDIARIES
(A COMPANY IN THE DEVELOPMENT STAGE)
CONDENSED CONSOLIDATED BALANCE SHEETS
JUNE 30, DECEMBER 31,
in thousands 2003 2002
==================================================================================
ASSETS: (UNAUDITED)
Current assets:
Cash and cash equivalents $ 28,206 $ 40,499
Short-term investments 4,019 4,354
Prepaid expenses and other 378 410
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Total current assets 32,603 45,263
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Property and equipment, net 2,432 3,001
Goodwill 3,108 3,108
Deposits and other assets 10 35
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Total assets $ 38,153 $ 51,407
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LIABILITIES AND STOCKHOLDERS' EQUITY:
Current liabilities:
Current portion of long-term debt $ 1,102 $ 1,061
Accounts payable 1,389 1,687
Accrued liabilities 4,041 2,185
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Total current liabilities 6,532 4,933
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Long-term debt, less current portion 7,948 7,731
Stockholders' equity:
Preferred stock - -
Common stock 29 29
Additional paid-in capital 133,890 133,411
Notes receivable - (3)
Accumulated deficit during the development stage (109,887) (94,046)
Deferred stock compensation (295) (589)
Accumulated other comprehensive loss (64) (59)
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Total stockholders' equity 23,673 38,743
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Total liabilities and stockholders' equity $ 38,153 $ 51,407
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ESPERION REPORTS FINANCIAL RESULTS FOR THE QUARTER AND
SIX MONTHS ENDED JUNE 30, 2003 PAGE 4
ESPERION THERAPEUTICS, INC. AND SUBSIDIARIES
(A COMPANY IN THE DEVELOPMENT STAGE)
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
THREE MONTHS ENDED SIX MONTHS ENDED INCEPTION TO
JUNE 30, JUNE 30, JUNE 30,
----------------------------- --------------------------- --------------
in thousands, except share and per share data 2003 2002 2003 2002 2003
===================================================================================================================================
Operating expenses:
Research and development $6,272 $5,878 $11,732 $11,583 $88,180
General and administrative 1,561 1,428 3,190 3,073 20,306
Goodwill amortization - - - - 1,089
Purchased in-process research and development - - - - 4,000
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Total operating expenses 7,833 7,306 14,922 14,656 113,575
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Loss from operations (7,833) (7,306) (14,922) (14,656) (113,575)
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Other income (expense):
Interest income 100 284 249 604 7,446
Interest expense (318) (278) (628) (530) (3,013)
Other, net (384) (524) (540) (545) (745)
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Total other income (expense) (602) (518) (919) (471) 3,688
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Loss before income taxes (8,435) (7,824) (15,841) (15,127) (109,887)
Provision for income taxes - - - - -
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Net loss (8,435) (7,824) (15,841) (15,127) (109,887)
Beneficial conversion feature on preferred stock - - - - (22,870)
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Net loss attributable to common stockholders ($8,435) ($7,824) ($15,841) ($15,127) ($132,757)
===================================================================================================================================
Basic and diluted net loss per share ($0.29) ($0.27) ($0.54) ($0.52)
===================================================================================================================
Shares used in computing basic and diluted net loss
per share 29,456,532 29,237,360 29,425,766 29,217,352
===================================================================================================================
ESPERION REPORTS FINANCIAL RESULTS FOR THE QUARTER AND
SIX MONTHS ENDED JUNE 30, 2003 PAGE 5
ESPERION THERAPEUTICS, INC. AND SUBSIDIARIES
(A COMPANY IN THE DEVELOPMENT STAGE)
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
SIX MONTHS ENDED INCEPTION TO
JUNE 30, JUNE 30,
--------------------- -------------
in thousands 2003 2002 2003
===================================================================================================
Cash flows from operating activities:
Net loss ($15,841) ($15,127) ($109,887)
Adjustments to reconcile net loss to net cash
used in operating activities:
Purchased in-process research and development - - 4,000
Depreciation and amortization 636 731 5,449
Stock-based compensation expense 294 389 3,944
Decrease in notes receivable 3 6 126
Loss on sale of property and equipment 1 101 192
Non-cash interest expense included in long-term debt 240 177 1,027
Changes in assets and liabilities:
Prepaid expenses and other 34 862 (1,204)
Other assets 25 (17) 545
Accounts payable (299) (647) 1,657
Accrued liabilities 1,844 (739) 4,026
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Net cash used in operating activities (13,063) (14,264) (90,125)
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Cash flows from investing activities:
Purchases of property and equipment (65) (698) (7,011)
Deposits on equipment - - (557)
Acquisition of Talaria Therapeutics, Inc. - - (233)
Proceeds from sale of property and equipment - 2 32
Purchases of short-term investments (4,773) (34,252) (41,988)
Maturities of short-term investments 5,108 23,168 37,969
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Net cash provided by (used in) investing activities 270 (11,780) (11,788)
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Cash flows from financing activities:
Proceeds from issuance of convertible preferred stock - - 42,200
Proceeds from the issuance of common stock 479 152 79,590
Proceeds from long-term debt - 1,834 10,171
Repayments of long-term debt (521) (653) (3,318)
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Net cash provided by (used in) financing activities (42) 1,333 128,643
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Effect of exchange rate changes on cash 542 103 1,476
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Net increase (decrease) in cash and cash equivalents (12,293) (24,608) 28,206
Cash and cash equivalents at beginning of period 40,499 70,286 -
- ---------------------------------------------------------------------------------------------------
Cash and cash equivalents at end of period $ 28,206 $ 45,678 $ 28,206
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